In the best case, the company is becoming better for the company “Cisco systems”. Stock

Over the past few months, Cisco systems, Inc. (Nasdaq:CSCO), of course, was unsustainable, and most of the technologies. Just look at the graphics on the big names like Facebook Inc. (Nasdaq:FB), Amazon.com ink. (Nasdaq:events of the week) and Oracle Corporation (USA:second time). Until Cisco’s stock still managed well enough to manage through it all.

For the year so far stocks have risen by about 15% and 36% over the past 12 months.

Now it is reasonable for investors still skeptical about the stock CSCO. Let’s face the truth, the company only recently managed to create a positive growth in the top line.

Moreover, the competitive environment continues to be tough, especially for the core network business. CSCO needs to fight against operators as juniper networks, Inc. (Forecasts:– Developer), “Hewlett-Packard” the venture Co (Ticker NYSE:UPR), Arista networks Inc (Ticker NYSE:ANET) and Huawei.

There is even a developing competition with CSCO own customers as alphabet Inc (Nasdaq:goodbye, U.S.stock markets) and FB!

And Yes, the competition was a serious blow. I believe that the company’s share of the global marketing of Ethernet switching is reduced, going from 63% in 2013 to 53% in 2017.

Shares of Cisco and a company reorganization

Even with the problems, I still think that Cisco stock is worth considering. The fact that the company is a major transformation associated with major changes in technology and business models.

For example, Cisco have been moving to SaaS system, which involves the calculation of current subscriptions. Unfortunately, it’s not like hefty advance payments. Most likely, fees tied to use. So if the technology proves not to be useful, the client can simply unsubscribe.

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But there are key advantages to technology providers. This Subscription gives more stability of income, and incentives to keep innovating the product to lower churn.

The SaaS approach is truly a win-win. It is not surprising that many top tech operators to use as salesforce.com ink. (TICKER NYSE:CRM).

Now another important part of the transformation, which should increase the stock of thus on the modernization of network technology. The trick is to create “intuitive” systems that allow for configuration and programming. There is also more built-in security features and machine learning optimization and advanced Analytics.

At the heart of all this is a catalyst 9000. And Yes, traction was significant. In the last quarter of the year, this system saw the customer base more than doubled to 3,100. It is actually a smart product launch in the history of Cisco.

Summary at a price of Cisco stock

Cisco continues to produce significant cash flows. Over the last quarter, Cisco shares came to $ 4.1 billion, up 8% Year-over-year. Cisco in stock also sports an attractive dividend, which currently stands at 3.1% (was 14% increase in quarterly payments). Oh, and the company has approved a program to repurchase shares is $ 25 billion.

At the same time, it will be a nice boost from the bill on tax reform. Keep in mind that the company has 67 foreign accounts of billions of dollars. In other words, there should be no problems in the future to raise the dividend and pursuing an aggressive M&a program.

And finally, even with the runup in Cisco stock, the cost reasonable, with a forward price-earnings ratio of 15 times. All in all, there is a place at the top, especially in light of the ongoing transformation of the company and positive trends.

Tom Taulli is the author of high-profit IPO strategies, All about commodities and all about short sales. Follow him on Twitter at @ttaulli. At the time of this writing, he has not held positions in any of the above securities.

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